Research On Factors Influencing Industrial Competitiveness Of China

The pace of economic globalization has expedited increasingly since 1990s. A country or area must promote industrial competitiveness and go into the vehement competition in international market by the economic approach for developing its economy. The whole industrial competitiveness of our country is not strong, so we must theoretically launch the thorough research which could provide feasible theoretical instruction for the practice to advance industrial competitiveness comprehensively. The theory of factors influencing industrial competitiveness is the core of industrial competitiveness theory. Only accurately grasping the factors of industrial competitiveness, we could scientifically open out the basic rule which the industrial competitiveness formed, and then provide the theoretical basis for policy-makers making policies promoting industrial competitiveness.On the basis of economic environment and the industrial development in China, the paper analyzes the Porter's diamond model and points out the disadvantages from productive elements,market demand, government and technology innovation when it is used to analyze the industrial competitiveness in China. In view of the disadvantages, the paper defines the factors affecting the industrial competitiveness from macro level (level of industrial external environment), meso level (level of industry) and micro level (level of enterprise) and constructs the framework of factors influencing industrial competitiveness of China theoretically. Macro level includes FDI, productive elements, market demand and government behavior. Meso level comprises organizational structure and life cycle of industry. Enterprise resources, management, enterprise scale and culture are composed of micro level. The absorption of knowledge and innovation is regarded as the core element impacting the international competitiveness of industries, which runs through the above three levels. In the end, taking automobile industry of China for example, the paper uses scalar index, compiles data and makes empirical analysis on factors affecting automobile industry of China by SAS software.